Greenfire Upsizes Rights Offering to C$775 Million
Greenfire Resources Ltd., an oil and gas company based in Calgary, Alberta, has announced the terms of its upsized rights offering. The company plans to raise approximately C$775 million through this offering, up from the previously announced minimum size of C$575 million.
The proceeds will be used to repay a C$575 million bridge facility and a portion of other indebtedness incurred in connection with the acquisition of Connacher Oil and Gas Limited. The company's expected leverage ratio after closing the rights offering is approximately 1.2x debt-to-2027E adjusted EBITDA at US$70 WTI, with around C$425 million of liquidity under its new C$1.0 billion capacity reserves-based loan.
The rights offering will be available to holders of Greenfire Resources' common shares as of August 17, 2026, the record date. Each holder will receive one right for each common share held, entitling them to subscribe for 0.9167 of a common share at C$6.74 or US$4.81 per share.
Greenfire has entered into a standby purchase agreement with certain limited partnerships comprising Waterous Energy Fund and its affiliate, which currently own approximately 72% of the company's outstanding common shares. The WEF Shareholders have agreed to exercise their basic subscription privilege in full and purchase all remaining unsubscribed common shares.